Niti- Parichay #35

Recommendations by TRAI ON
DIFFERENTIAL LICENSING
in telecom
 SYNOPSIS
Telecom Regulatory Authority of India
(TRAI) released its recommendations
on unbundling of different layers of
telecom through differential licensing
REASON BEHIND THE NEW PROPOSAL
Under the current framework, a Unified License is issued for providing all
types of telecom services in the country which does not create a distinction
between different layers of telecom such as infrastructure, network, service,
and application

KEY RECOMMENDATIONS EXISTING SEGREGATION OF LICENSES

Segregation of network Framework for VNO: Infrastructure Provider

layer license, at infrastructure
level
• A separate A framework should be prescribed
authorisation level for requiring access network
called Access Network providers and unified licensees to
Provider authorisation provide wholesale services to
should be provided VNOs in a transparent, fair, and Virtual Network Operator
within Unified License non-discriminatory manner (VNO) License, at service
level
 FUNCTIONS & POWERS OF ACCESS NETWORK PROVIDERS (ANP)

It will provide network services on a wholesale basis to service delivery operators

They will not be allowed to directly provide services to consumers under Unified License

They may obtain a VNO license to give services directly to consumers

These will be permitted to acquire spectrum through auctions and enter into spectrum trading

They will also be permitted to share their resources with telecom service providers

If a licensee with access service authorisation under the unified license wishes to migrate to a
segregated network layer and service layer regime, it will be allowed
License fees and spectrum charges applicable to network provider authorisation will be the same as
those for access service authorisation
 EXPECTED FUTURE IMPACT AND OUR OPINION

• SIGNIFICANCE:

o Expected to promote investments, ease of doing business, and innovation in the sector
o Will enable sharing and optimum utilisation of telecom resources

• CONCERNS:

o Goes against regulatory consistency: It has already been opposed by operators like Reliance
Jio, Vodafone Idea, and Airtel
o May lead to investor uncertainty: Has potential to wreak unknown and unpredictable impact
on investments already made
o Increase compliance burden: As a converged licence like earlier, for network and service
layer offers clarity while the new framework is regressive in nature

The Buzzword/Term to be focused : ANP (Access Network Provider)